Item: AlphaSense
Rating: 8
Author: Verified User

Use Cases and Deployment Scope

Our organization uses AlphaSense both to keep track of our existing portfolio of private companies and conduct diligence on new potential investments. We generally rely on the platform's search function (i.e., research and company docs) to keep us apprised of recent events. When conducting diligence, we use AlphaSense to gain a better understanding of the companies we are targeting, the industries they are in, key competitors, etc. We have also begun recently leveraging Stream both for transcripts and conducting expert calls ourselves. AlphaSense presents a tool for us to quickly get up to speed on a new area.

Pros and Cons

AlphaSense's search function is, on the whole, effective. For example, if you are looking at a public company, you can access a wide range of equity research analyst reports in a matter of seconds.
I have been impressed with AlphaSense's Stream function to date, particularly the library of expert transcripts. This library provides a differentiated, streamlined way of hearing directly from people who know the ins and outs of a given business or industry.
AlphaSense is strong when it comes to innovating on their product and user experience. For example, they have been at the forefront when it comes to rolling out solutions around generative AI through the launch of Smart Summaries. This DNA of innovation is appreciated from a user standpoint.

Acknowledging that Stream is a relatively new product, I have found that there is room for improvement in terms of the quality of individuals sourced for expert calls, especially compared to some of the legacy expert call providers. The depth of Stream's expert call database is still being expanded.
At times, the AlphaSense can be overwhelming with regards to the sheer number of features available. For example, the main landing page for the Search function is filled with different drop-downs, filters, tags, etc. As someone who uses AlphaSense, but only on a sporadic / case-by-case (as opposed to daily) basis, it can be difficult to navigate this interface, so I often find myself sticking with one or two basic functions instead of fully delving into new features.
While some searches on AlphaSense yield very useful results, others are much more limited. This is simply a function of the keywords involved, but it does at times hinder my ability to conduct research on certain topics.

Return on Investment

AlphaSense has allowed us to generate deeper competitive insights. For example, we conducted an in depth analysis of the aerial data analytics (drone) industry, and AlphSense helped us narrow in on the market leaders and their various strengths / weaknesses.
AlphaSense has improved our team's overall efficiency. With Stream in particular, we are able to pinpoint insights in a matter of minutes through the transcript feature as opposed to having to conduct a series of calls ourselves. This is a significant time saver.
AlphaSense has allowed us to make more informed decisions on our public holdings by providing us with unfettered access to equity research analyst reports.

Usability

AlphaSense is a fairly intuitive platform to use, particularly the Search feature. That said, as a user you are confronted with a raft of different functions and drop-downs, which can be overwhelming at times. Moreover, while it is a net positive that AlphaSense is constantly innovating and adding new features, it can be tough at times to keep track of all of AlphaSense's underlying capabilities.

AlphaSense Market Intelligence

AlphaSense's Search function as well as Stream have combined to provide our team with important data insights that we have used to both keep up with our current private and public market portfolio and assess new investment opportunities. AlphaSense is geared more readily towards public markets as opposed to venture capital, but it is still a useful tool for helping us keep tabs on developments in the markets that we focus on.

Alternatives Considered

PitchBook, CB Insights and S&P Capital IQ

In general, PitchBook and CB Insights are better equipped than AlphaSense to provide data specifically geared towards private market investing. S&P Capital IQ, on the other hand, is - like AlphaSense - designed primarily to provide information from public sources in a streamlined manner. AlphaSense has the most advanced search functionality out of all of these products, and Stream is a key differentiator (although it is similar to GLG, albeit more cost effective).

Key Insights

Do you think AlphaSense delivers good value for the price?

Yes

Are you happy with AlphaSense's feature set?

Yes

Did AlphaSense live up to sales and marketing promises?

Yes

Did implementation of AlphaSense go as expected?

Yes

Would you buy AlphaSense again?

Yes

Other Software Used

PitchBook, CB Insights, S&P Capital IQ

Likelihood to Recommend

AlphaSense is extremely well-suited for individuals who are in an equity research role, or are otherwise tasked with delving deeply into public companies. There is a incredible depth of information on the platform that is, importantly, made readily accessible for the end user. On the flip side, for individuals who focus primarily on private companies, AlphaSense's usefulness is somewhat more limited, as there is not as much public information on these businesses for AlphaSense to source.

Driving Differentiated Insights

Overall Satisfaction with AlphaSense